Howard Hamilton

This week we continue to look at developments in the racing industry over the years. We are at the stage where Caymanas Park Ltd, is insolvent. The off-course betting operations have been expanding having been legalised in 1966.

These 'bookmakers' with over 800 outlets islandwide, now control 70 per cent of the total turnover of racing. The Betting Gaming and Lotteries has been formed with the intention of better regulating the industry and funding through taxation and levies the development of racing. The contributions from the levy scheme, having been fixed at $100,000, proved inadequate and the promoters were told that nothing could be done until the proposed restructuring of the industry was put in place.

Plant closed

The promoters are unable to sustain their operations; trainers and owners refuse to nominate horses, and the plant is closed. The Jamaica Racing Commission was formed towards the end of 1971 and immediately set about trying to get a more equitable distribution of levy scheme funds.

Looking back at the '70s, this decade could be regarded as the watershed of the racing industry. The government became much more involved. The formation of the Racing Commission was a significant development which has had the most far-reaching effect on the industry.

With the change of Government in 1972, the role of the commission took on a higher level of significance. It established strong channels of communication and played an important role in determining Government's policy towards racing.

The promoting company continued to be dependent on government support and there was much talk of a tote monopoly since the promoters 'processed' less than 40 per cent of the turnover generated by their activity. There was a philosophical problem with Government 'subsidising' a private commercial group structured for profit making and the responsibility to pay dividends to its shareholders. It was argued that this 'subsidy' was from funds generated by the promoter's activity and should be channelled back to them. In fact that argument still persists today and, indeed, is not without merit.

There was a strong lobby for Government to grant a tote monopoly to the promoters as the only feasible way of guaranteeing the satisfactory development of the industry for the future. The Minister of Finance made it clear that no consideration would be given to a tote monopoly as long as the promoter was a privately owned profit-making company. This was the genesis for the formation of Racing Promotions Ltd. (RPL) with shares equally held by The Jockey Club of Jamaica Ltd. The Jamaica Racehorse Owners' Association, The Jamaica Racehorse Trainers' Association, The Thorough-bred Breeders' Association Of Jamaica, The Jockeys' Association of Jamaica and The Grooms' Association of Jamaica.

Management agreement

Formed at the same time was Track Services Ltd. (TSL), which held a management agreement with RPL. RPL leased Caymanas Park and obtained a licence to promote racing. In order for RPL to be financial viable to carry out, its responsibilities to the industry, it was necessary for it to obtain concessions from the Government.

The matter of management was raised as an essential prerequisite for these concessions to be granted to the company. The Minister needed to be assured that RPL would be efficiently managed before granting any concessions, hence the formation of TSL.

More on this next week.